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Bank of England Aligns With the Fed Over Rout in Bond Market

  • U.K. and U.S. are diverging from views at ECB and across Asia
  • Treasury budget this week will highlight record U.K. borrowing
Bank Of England Interest Rate Decision
Photographer: Hollie Adams/Bloomberg

In the showdown between traders and central bankers over rising bond yields, the Bank of England is aligned more with the relaxed views of the U.S. Federal Reserve than peers in Asia and Europe that are trying to rein in markets.

Addressing the topic for the first time late last week, BOE policy makers echoed Fed officials in reading a surge in borrowing costs as optimism about a rapid recovery. They brushed aside concerns about a return to the dysfunction in markets that dominated the early days of the coronavirus pandemic.